Blockchain and Cryptocurrency Beginner - Will regulations in Crypto add value to the Crypto space?
In my opinion, regulations will add value the crypto space to a great extent. This is because when certain positive regulations are put in place, it can greatly reduce the rate of scam projects. Because cryptocurrency transactions are anonymous and cannot be traced to the people behind the scamming activities, some regulations can come in handy in mitigating the rate of scam projects surfacing. Some of the ways which regulations can add value to the crypto space are;
It can help encourage the formation of self-regulatory bodies that can set some standards especially for cryptocurrency projects. This can help reduce the rise of scam projects because it would be a lot more difficult for scam projects to meet to the standards and requirements.
Regulation can help mitigate money laundering through cryptocurrency. Exchanges where a lot of these stolen cryptocurrencies are transferred to, can help tighten up to make it difficult for scammers to sell stolen cryptocurrencies
Regulations can help make it a standard for crypto projects to be fully registered. This can help reduce the rate of scam projects because it means that users will not invest in any project that is not fully registered.
Crypto platforms should be fully audited before being available for users. When crypto platforms are fully audited, this will go a long way to mitigate fraudulent codes or platforms that are created to scam users and steal user funds.
Government organization adopting the use of cryptocurrencies can open the door for more adoptions. When government authorities put up a directive to adopt the use of cryptocurrencies, this can encourage more investments from top individuals, big institutions and other private businesses, as they would feel more confident to adopt cryptocurrency.
The rise and continuous growth of cryptocurrency has been amazing years now. However, it has also seen the massive increase in the rate of scams. Because anonymity is one of the main characteristics of cryptocurrency, a lot of scammers have taken advantage of it to carry out scam actions. That is why it is important to do proper fundamental analysis before inventing in any crypto project. Also, regulations can help add value to the crypto space by mitigating the rate of scam project, the lower the rate of scam projects in the crypto space, the more healthy the crypto space will be and in turn, attract more investors.
